- EUR/GBP is extending declines from 7-month highs at 0.8866 hit last week.
- Technical indicators have turned slightly bearish, RSI and Stochs are biased lower.
- MACD line is showing a bearish crossover on signal line.
- The pair is currently holding 20-DMA support at 0.8724, we see weakness on break below.
- Scope then for test of 0.8648 (38.2% Fib of 0.8297 to 0.8866 rally). Violation there will see test of 100-DMA at 0.8614.
- Bearish invalidation on break above 0.8845 (channel top resistance).
Support levels - 0.8724 (20-DMA), 0.8648 (38.2% Fib of 0.8297 to 0.8866 rally), 0.8614 (200-DMA)
Resistance levels - 0.8765 (5-DMA), 0.88, 0.8845 (channel top)
Recommendation: Good to go short on break below 0.8724, SL: 0.8765, TP: 0.87/ 0.8650/ 0.8615
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -13.5465 (Neutral), while Hourly GBP Spot Index was at 139.302 (Bullish) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
